Small Business Insurance

Whether you’re a small business or home business, small business insurance is important. As one of the 5.7 million small businesses in the UK it’s important that you’re protected against the risks that can affect your business.

What is small business insurance?

Small business insurance is a type of cover you take out to protect your small business from a variety of costs. It comes in a variety of shapes and sizes, and often the specifics you’ll need from a business insurance policy will depend on the nature of your work.

Do I need small business Insurance?

There’s only one policy you’re legally required to have as a small business, and that’s employers’ liability insurance (EL).

EL covers your business in the event that one of your staff members claims they’ve suffered an illness or injury as a result of working for you. It covers any legal and compensation costs involved in defending the case.

If you don’t have EL, the Health and Safety Executive (HSE) can fine you £2,500 for every day you go unprotected. So, flouting the law could be costly.

What other business insurance is there?

Public liability insurance (PL) is one of the most popular policies for small businesses. It covers you for claims made against you by members of the public.

We all know that accidents happen. PL covers you if you or one of your staff accidentally causes injury or property damage to a member of the public. This could prevent your business from facing hefty legal fees and compensation costs.

It’s also worth noting that your clients and suppliers may request you have PL as a condition of working for them. So, it’s a critical cover in more ways than one.

Contents and portable equipment insurance

If you work at home or in the office, you may want to take out contents insurance to cover stock and office equipment. You can tailor your contents insurance to meet your needs according to the type of business assets that are on the property. If your work includes travel, you can also get cover away from the home or office for valuables like cameras, laptops, mobile phones, and baggage.

Standard contents cover is for everything you keep on-site, such as your furniture, fit-out, and fixed equipment.

Professional Indemnity Insurance (PI)

Professional indemnity insurance is for businesses that offer professional services or advice. It covers you if you make a mistake, or if a client suffers (or claims to suffer) a financial loss as a result of your work. Picking up the bill for any legal and compensation costs. And as with Professional indemnity insurance, some of your customers are likely to insist upon PI – so it could even help with your new business.

Directors’ and officers’ liability insurance

Any business founder or director should also consider investing in directors’ and officers’ cover. This type of cover is also known as management liability insurance.

Rather than protecting the business as a whole, this protects particular individuals in the business. It covers them for any claims against them personally. This includes breaching health and safety laws, misadministration of the company pension, or errors in financial reporting.

In these situations, the penalties can be significant, including fines, disqualification or even a prison sentence. Directors’ and officers’ liability insurance will help you defend them, while covering legal and compensation costs. This is a key one to have if you’re seeking investment, as investors are likely to ask if you’re covered.

There are a few points to watch out for when purchasing management liability cover, particularly if you’re a startup. Many policies do not cover businesses for insolvency, one of the biggest risks facing early-stage businesses. So, make sure you find one that does.

You should also look for a policy that includes claims made by large shareholders (who have more than 15% of the business), or you could find you’re not covered for certain claims.

Cyber liability insurance

This covers businesses for data breaches and cyber-attacks and all the damage it inflicts. Cyber insurance will cover any legal claims, compensation costs, and fines under the GDPR (where legally insurable). In some cases, it can provide a fast response plan including legal, IT, PR and customer service support.

Equipment and tool cover

If you require tools as part of your work, you can cover these. In addition, you can also get cover for your business furnishing or equipment. This type of cover can protect and insure your for:

  • Protection against the breakdown of production machinery
  • Electronic, electrical, mechanical and pressure equipment
  • Loss of perishable products
  • A guarantee against crime

If you use a van as part of your job, (i.e builder). Your home business insurance may also cover your vehicle from tool theft.

Business interruption cover

Regardless of your business type. If you suffer a loss of profit or business as a result of an insured event, your home business insurance policy may cover this also.

Third-party Liability

Third-party Liability covers you against claims that third parties may present to you. This could be as a result of personal injury or property unintentionally caused by your privacy or insured premises. It also covers the voluntary reimbursement of medical and funeral expenses and the voluntary settlement of property damage.

How can 360 Protect help?

We understand insurance very well, therefore we can advise and explain keyman cover and help you find the right cover for your employees. We will help you understand and direct you to the best insurers based on what cover your employee requirements.

We’re not a sales site or an insurer, therefore we will only give you impartial advice to help save you time and give you peace of mind that small business remains protected.

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